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13 August 2018Americas

PhRMA members invested $71.4bn in R&D in 2017

Members of the Pharmaceutical Research and Manufacturers of America (PhRMA) last year obtained the highest-ever level of investment for the industry group, recording $71.4 billion of funding in research and development (R&D).

Approximately one out of every five dollars of revenue for a PhRMA company was devoted to R&D, according to an announcement from the association, published on Thursday, August 9.

PhRMA added that its membership’s R&D spending represents the majority of the estimated $90 billion spent by the entire US biopharmaceutical industry on R&D in 2016.

“The US biopharmaceutical sector at large accounts for roughly one-sixth of total domestic R&D spending by US businesses, the single largest share of all US business R&D. Over time, this focus on R&D investment has helped spur medical advances for US patients,” said the association.

The investments are delivering incredible breakthroughs, and more are on the horizon, said PhRMA.

In 2017, the US Food and Drug Administration (FDA) approved 56 novel medicines, including the first gene therapies, the first medicine for primary progressive multiple sclerosis and the first treatment for sickle cell disease in 20 years.

“Among potential medicines in clinical development, 74% are potentially first-in-class, meaning they represent an entirely new way of treating a medical condition,” said the announcement.

PhRMA added that there are more than 1,100 new medicines and vaccines in development to treat cancer.

“The complex R&D enterprise is the foundation for the 4.7 million jobs the biopharmaceutical sector supports throughout the economy, including the 140,000 biopharmaceutical researchers working tirelessly to develop new treatments and cures,” concluded the association.

In May last year, PhRMA cut 22 members based on a new set of membership criteria, one of which required an increased amount of spending on R&D.

Members are now required to invest at least $200 million per year and 10% or more of global sales (based on a three-year average) into R&D.

At the time, Joaquin Duato, PhRMA board chairman and worldwide chairman, pharmaceuticals, Johnson & Johnson, said: “By putting in place new membership criteria, the board is sending a clear message that being a member of PhRMA means being committed to doing the time-intensive, scientifically-sound research it takes to bring bold new advances in treatments and cures to patients.”


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11 May 2017   The Pharmaceutical Research and Manufacturers of America has cut 22 members based on a new set of membership criteria it introduced on Tuesday, May 9.
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6 November 2018   Pharmaceutical Research and Manufacturers of America has identified Brazil and Thailand as two of the worst countries for patent delays, in a submission made to a US government report.

More on this story

Americas
11 May 2017   The Pharmaceutical Research and Manufacturers of America has cut 22 members based on a new set of membership criteria it introduced on Tuesday, May 9.
Americas
6 November 2018   Pharmaceutical Research and Manufacturers of America has identified Brazil and Thailand as two of the worst countries for patent delays, in a submission made to a US government report.